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What are those confusing dealer fees?

Fees are everywhere! From the recycling fee when you buy a can of Coke to the administration fee when you pay your cell phone bill.

Extra fees have seemingly become more commonplace. And they are universally despised.

Consumers are a little more forgiving however if they understand what the fees are exactly. We are going to attempt to explain what you see on a bill of sale for your newly purchased vehicle.

GST
Vehicles purchases are the same as any other product and are subject federal taxes. The dealer collects and pays the GST to the government. This tax is non-negotiable and must be paid by the customer.

Air conditioning levy
The Canada Revenue Agency levies an excise tax of $100 on vehicles sold with air-conditioning. This is a mandatory fee paid to the government.
Advance disposal surcharge (tires)
The advance disposal surcharge for tires is a mandatory environmental fee that must be paid when new tires are sold in Alberta. The fees are $4 per tire for cars and light trucks and $9/tire for rim sizes greater than 19.5” for use on larger vehicles.

AMVIC LevyAMVIC is the Alberta Motor Vehicle Industry Council and is Alberta’s automotive industry regulator. AMVIC charges a levy of $6.25 to fund the AMVIC Consumer Compensation Fund and to provide investigation and education programs.

Freight and Delivery
This is the cost of shipping a vehicle from the point of manufacture to the dealership. The manufacturer charges the cost of the freight and delivery to the dealership.

Pre-delivery Inspection (PDI)
The pre-delivery inspection involves a very long list of items that are checked on the vehicle to ensure that it is fully functional before being delivered to the consumer. The manufacturer sets the fees charged for the PDI.
At Country Hills Toyota we check the following before you get your newly purchased vehicle:

Check the lights and signals

Check the windshield wipers and fluid

Check the power outlets

Check the audio system and setting the clock

Check Toyota park assist system

Check the Rear View Monitor System

Check window operation

Check door locks including each wireless remote control

Check that the engine starts with all keys

Check the headlight aim

Check engine fluid levels

Check for fluid leaks

Check for fluid leaks

Remove anti-rust covers from brakes

Inspect tires for defects/damage

Activate tire pressure warning system

Install wheel covers/caps

Inspect nuts and bolts on chassis for looseness

Inspect under vehicle for damage/rust

Check engine operation

Check brake operation

Check steering operation

Inspect for squeaks, noises, vibration and rattles

Check heater and A/C operation

Check for fluid leaks

Check cruise control operation

Remove protective film and inspect paint

Install floor mats

Place Owner’s Guide and first aid kit in glove box

Wash and clean vehicle

Documentation/Administration fees
Because the purchase of a vehicle is heavily regulated by government and industry agencies it involves a lot of administrative work behind the scenes.

All available lending sources are shopped for the best available rates

Remittance of lien payouts if necessary

Transfer of equity and lease assumptions

Completion of paperwork to terminate finance/lease contracts

Warranty

Preparation of factory or extended service plan documents and registration with suppliers

Administration of transfers and cancellations

Insurance

Preparation of forms required by insurers

Administration of claims and cancellations

By the time the keys to your new vehicle are handed over there will have been several people involved in finalizing the purchase. We hope we’ve given you a better understanding of the fees that are involved with a vehicle purchase.

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